Real Estate Broker Law & Duties
Washington State Real Estate Brokerage Relationships Summary
The following is a high level summary of the key points from the Real Estate Brokerage in Washington State pamphlet. The actual pamphlet with full details can be found at the bottom of this page for your reference and further reading.
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1. Introduction
- This pamphlet is a guide to real estate brokerage in Washington State.
- It outlines the legal aspects of real estate brokerage relationships.
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2. Licensing and Supervision of Brokers
- Brokers must be licensed under chapter 18.85 RCW and work for a licensed real estate firm.
- Each firm has a designated broker responsible for supervising their brokers.
- The Washington State Department of Licensing oversees all real estate firms and brokers.
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3. Agency Relationship
- A broker becomes an agent for a seller/landlord or buyer/tenant (referred to as principals).
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4. Agency Relationships for Sellers and Buyers
- For Sellers: A written agreement is required to establish an agency relationship.
- For Buyers: Agency relationship is established by performing brokerage services, but a written agreement is required as soon as practical.
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5. Limited Dual Agency
- A limited dual agent represents both buyer and seller in a transaction.
- Written consent is required from both parties.
- This can happen either when both parties are represented by the same broker or by different brokers in the same firm.
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6. Duration of Agency Relationship
- The agency relationship lasts until the earliest of: completion of the broker’s service, expiration of the agreement term, mutual agreement termination, or notice of termination from either party.
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7. Written Services Agreement
- Must include duration, appointed broker(s), exclusivity, consent for dual agency, compensation terms, and any other agreements.
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8. Broker’s Duties
- To all parties: Exercise skill and care, deal honestly, present offers timely, disclose material facts, account for all money and property, provide this pamphlet, disclose representation, and disclose compensation terms.
- To their principal (buyer or seller): Loyalty, disclose conflicts of interest, advise seeking expert advice, confidentiality, and continuous effort to find property or buyer.
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9. Limited Dual Agent Duties
- No action detrimental to either principal, disclose conflicts, advise both to seek expert advice, confidentiality, and continuous effort for both buyer and seller.
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10. Compensation
- Can be paid by seller, buyer, third party, or shared between firms.
- Must have a written agreement or a “Compensation Disclosure” for commercial transactions.
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11. Short Sales
- In a short sale, the sale proceeds are less than the seller's debts.
- The real estate firm must inform the seller that a short sale does not automatically relieve them of any remaining debt or costs, including real estate firm compensation.
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Please note the preceding is a summary only. For the full details, please review the following "Real Estate Brokerage in Washington" .pdf pamphlet (click the PDF icon)
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